CP25/40: Regulating cryptoasset activities

Read CP25/40 (PDF)[1]

Why we are consulting

We want to develop a competitive and sustainable cryptoasset sector. Our proposed rules and guidance are aimed at effectively promoting market integrity, protecting consumers, and supporting innovation and competition in the UK cryptoasset sector. We are consulting on how the unique aspects of cryptoassets should be considered in our future regulatory regime. This consultation paper (CP) focuses on how we regulate trading platforms, intermediaries, aspects of lending and borrowing, staking and decentralised finance.

Our proposed rules and guidance are designed to promote an environment where UK consumers are served by authorised cryptoasset firms and can access transparent information and support to help them make informed decisions.

These proposals have been informed by extensive engagement with the cryptoasset industry, consumers, traditional finance participants, other regulatory regimes, feedback from our discussion paper (DP25-1[2]) and policy roundtables held in 2025. We have also considered feedback from other discussion and consultation papers such as our Application of FCA Handbook for Regulated Cryptoasset Activities CP (CP25/25[3]) and Stablecoin Issuance and Cryptoasset Custody CP (CP25/14[4]). These proposals also reflect feedback from the 2023 Treasury Consultation. 

This CP is published alongside CP25/41[5], which sets out our proposed requirement for admissions, disclosures and our market abuse regime for cryptoassets and CP25/42[6] which sets out our proposed prudential requirements for cryptoasset firms.

As part of our Crypto Roadmap[7], our regulatory remit will expand to a more comprehensive cryptoassets regime, set out in the Treasury’s[8] recent legislation. Other areas in the roadmap include market abuse, and admissions and disclosures, stablecoins and custody, and prudential considerations.

Who this is for

Our proposals will affect consumers and firms who use, or interact with: 

• Regulated cryptoasset activities as set out in the Treasury’s Statutory Instrument[8]. 

Who needs to read this document:

• Firms planning to undertake any of the regulated cryptoasset activities as set out in the Treasury’s Statutory Instrument[9].
• Industry groups, law firms and trade bodies representing firms in the cryptoasset sector.
• Auditors and professional advisers providing services in the cryptoasset sector.
• Groups representing consumer interests.

It may also interest:  

• Policy makers and other regulatory bodies.
• Academics and think-tanks.
• Industry experts and commentators.

Next steps

We want your comments on our proposals by 12 February 2026. 

Online response form[8]

Or in writing to: Crypto Policy Team, Financial Conduct Authority, 12 Endeavour Square, London, E20 1JN.
Email: [email protected] 

To help firms and stakeholders understand the policy rationale and considerations of our proposals and to gather feedback, we will arrange a series of in-person and virtual engagements.  

We will consider responses to all the consultations as part of the Crypto Roadmap and we intend to set out our final rules and guidance in policy statements in 2026.

Background

Under the government’s plans, our regulatory remit for cryptoassets will expand from the current Money Laundering, Terrorist Financing and Transfer of Funds (Information on the Payer) Regulations 2017 (MLRs) and financial promotions regime to a more comprehensive crypto regime. In December 2025, the Treasury introduced the Financial Services and Markets Act 2000 (Cryptoassets) Regulations 2025[10] (‘the Cryptoasset Regulations’) to bring new cryptoasset activities within our regulatory remit.